Headteachers said today a lack of money in their budget will make things difficult in the coming year.

New Government reforms will see all of this region's education authorities reeive an average of 6.8% extra funding per child - but that still leaves most well below the national annual average of #3,888 per child.

While the pounds per child has increased for all the North East education authorities, North Tyneside, Sunderland and Northumberland schools remain hundreds of pounds worse off than the average UK education authority. County Durham pupils receive #3,818 per head.

Carol Down, head for the past 20 years of West Moor Primary School in Shiremoor, said she was happy with her school's progress, but more money would certainly make things easier.

Mrs Down added: "We're lucky here because we have an excellent staff and are a real community school. When things need to be done, everyone's prepared to go the extra mile to get it.

"But we're constantly working with a deficit. It's like carrying round a huge debt all of the time. In everything we do, money has to be considered. And it's the frustration factor more than anything else that makes it difficult.

"If we had more money we could do everything we want, when we wanted."

Christine Corbitt, head of Belsay First School, Ponteland, which received a glowing Ofsted report, added: "The budget is not the be-all-and-end-all but the fact that we have less money than other places does make things more difficult.

"It means you cannot get the extra staff you may want, or pay for the facilities you'd like. And I think our location also plays a part.

"The fact that we're a small rural school makes it more difficult to get to, and we don't qualify for inner-city schools grants.

"But Northumberland Council is very good and always informs us when there are changes to be made to the budget. So money does have an effect, but it doesn't mean everything to us."

By 2007-08, the average Northumberland child will have just #3,552 a year spent on its education - almost half that received by children in central London (#7,090), and much less than affluent areas of the capital such as Kensington and Chelsea (#5,533).

Currently, only two areas in the region - Newcastle, #3,822, and South Tyneside, #3,923 - will get more than the national average.

A Department for Education & Skills spokesman said: "Funding for every local authority is calculated according to its pupil numbers with top-ups for deprivation, high area costs and sparsity, reflecting the relative needs of each area, such as the high costs of small primary schools in rural areas.

"Inner-city authorities tend to have significantly higher numbers of pupils from deprived backgrounds, so are likely to need extra support."

The Government says the new arrangements will finance education reforms.

But Berwick Liberal Democrat MP Alan Beith said: "Yet again, the Government has given Northumberland a wholly inadequate settlement. We really don't see why pupils in the county should have so much less spent on them than the rest of the area.

"Northumberland is expected to run a large number of village schools, and that's more expensive than concentrating pupils in one part of town. That should be recognised."

Vin Wynne, county secretary of the National Union of Teachers, said: "This won't give anyone any faith in the Government's ability to fund education fairly.

"I still can't understand how we get such a poor settlement. But perhaps the Government isn't prepared to fund small rural authorities where there are no marginal electoral seats."